Victory Investment

Archive for October, 2010

Like many great ‘client friendly’ tools, the Chappell Mayfield Investment Dashboard™ was born out of necessity.  During our quarterly and annual investment reviews, it became apparent that we were inundating our clients with information from too many sources.  Each fund had its own quarterly fact sheet with statistics and numbers, the actual advisory statement was nearly a dozen pages, commentary from the managers varied from one to five pages, and the various benchmarks took up at least two pages.  We needed a way to organize several key pieces of information in an easy to read format.  A client, who is a retired executive with extensive experience reviewing numbers, assisted in the creation of the template and served as our sounding board.

Soon after, the Chappell Mayfield Investment Dashboard™ was born.  Over the years, we have refined the visual appearance of the Dashboard, to increase clarity, as well as the criteria we use to evaluate performance. The dashboard addresses four critical areas—Performance, Allocation, Contributions/Distributions and Changes Made to the Portfolio.  Many of these metrics are missing from even the most sophisticated client investment statements.  We subscribe to several different software programs and reporting tools to gather the data and put it all into one fluid report.  Each of the dashboard’s components serve a vital purpose in helping the client understand exactly where their portfolio, and their retirement plans, stand at that particular point in time:

1) Performance: The investing world is full of statistical measures that are very difficult for most investors to understand. Using an intuitive layout and color coded tabs, we were able to create a tool that virtually any client can understand, regardless of investment experience. Performance is shown in the following metrics:

Performance relative to Benchmark (most recent quarter, 1, 5 & 10 years)

Performance versus the benchmark is important, but it doesn’t indicate how other investments with the same benchmark may have fared.  That requires that we show:

Performance relative to Peers (measured in percentile over 3 & 5 Years)

GREEN indicates top quartile, YELLOW indicates second quartile, and RED indicates bottom half
Several studies have shown that most top managers spend at least some time in the bottom half of their peers – we take that into consideration
The “home run” is having a manager move from the bottom half to the top quartile WHILE you are invested with them
A manager that is moderate or even conservative may never appear in the top quartile.  Then again, they may never appear in the bottom quartile either.
That leads us to try to quantify risk:

Upside/downside Capture versus Benchmark (measured in percentages)
In the last 12 quarters, when the benchmark has gone UP, how much has this investment participated?
In the last 12 quarters, when the benchmark has gone DOWN, how much has this investment participated?
Numbers over 100 indicate more volatility than the benchmark
Ideally, an investor would want a higher number in the UP capture and a lower number in the DOWN capture

Outlook indicates our general opinion of the particular investment
GREEN means that we are firmly in support of this investment
YELLOW indicates that we have this investment on our “watch list,” but it is too early to recommend a change
RED is the “sell” signal.  When clients see RED in this column, they know that we will have a change to recommend to them

- Allocation:  the Dashboard illustrates the portfolio of the client according to asset classes

Color coordinated pie charts show  the percentage in every asset class
Illustrates holes in portfolio or lack of proper balance among stocks/bonds/alternatives
Shows the return of the entire portfolio over various time frames

3)  Contributions/Distributions (not shown):  shows the historic account of money coming into or out of the client’s portfolio

The actions of the investor will affect performance
Client’s need to know how much they have taken/added to their portfolio – having it all in one place makes the investing experience easier

4)  Changes to Portfolio:  tracks any changes made to their investments

A critical component to hold us accountable for our recommendation to buy/sell something
Gives some retrospective view to historic performance and decisions

Combining this information into one place is not just unique, it is extremely powerful.  The Dashboard’s most valuable trait is that it helps us focus the client on what matters.  It is color coordinated.  So, if the client sees RED in the outlook column, they know that we are going to be recommending changes.  If it is all GREEN, we will spend more time talking about their family vacation.  There isn’t a single document, to our knowledge, that simultaneously addresses all four of these critical areas.  In a matter of minutes our clients know exactly where they stand. Without a doubt, this has been an important component in building loyalty and strengthening the relationships that we have with each of our clients.

A critical component to hold us accountable for our recommendation to buy/sell something
Gives some retrospective view to historic performance and decisions

Combining this information into one place is not just unique, it is extremely powerful. The Dashboard’s most valuable trait is that it helps us focus the client on what matters. It is color coordinated. So, if the client sees RED in the outlook column, they know that we are going to be recommending changes. If it is all GREEN, we will spend more time talking about their family vacation. There isn’t a single document, to our knowledge, that simultaneously addresses all four of these critical areas. In a matter of minutes our clients know exactly where they stand. Without a doubt, this has been an important component in building loyalty and strengthening the relationships that we have with each of our clients.

Just like all methods of immigration, the process of obtaining a U.S. green card using the EB-5 visa program can get a bit tricky, but laying out the general steps greatly simplifies the process.

The EB-5 visa program allows foreigners to become eligible for U.S. green cards if they invest million in a U.S. business and that investment leads to the creation, or preservation, of 10 jobs.

The million investment requirement may be the most important part of the program and, as such, requires the most thought. The million can be invested on one’s own or with the help of an EB-5 regional center.

A regional center is an umbrella company of sorts that’s manages the investments with a focus on a targeted geographic region. They can be private entrepreneurs, corporations or government agencies. After being approved for regional center status, the center is tasked with handling the investment. It is estimated that more than 90 percent of EB-5 investments are handled through the 84 regional centers in the country. They have proven to be a safe and reliable way for investors to obtain U.S. green card eligibility.

In some instances, the investment need not be million. In regions designated Targeted Employment Areas (TEA) only a 0,000 investment is required. These areas are distinguished by having an unemployment rate higher than the national average.

One of the most attractive features of the EB-5 visa program is that the participant does not have to settle in the area in which they invested. So the whole country is open to EB-5 investors.

In addition to the specific paperwork required for the EB-5 program, it is important for the potential investor to have their identification documents, such as birth certificates, bank statements and immigration papers in order. Having these can make the EB-5 process run much more smoothly.

Once the investment has been made and all the paperwork has been filed, EB-5 investors are generally allowed into the country on conditional resident visas. These allow investors to stay in America while they wait for their green cards.

Finally, if the investment has created 10 jobs, either directly or indirectly, the investor can apply for a U.S. green card. When the green card is issued, the investor and their entire immediate family is permitted to live anywhere in America.

These countries are often less regulated than the host country and are hence preferred by offshore investors. Offshore investment gives greater freedom to the investor and has the potential for much greater return on investments. Since there is a wide portfolio of investments on offer offshore investment companies play a vital role in conducting these affairs.

Offshore investments can be made in the form of hedge funds, offshore investment funds, overseas mutual funds, offshore investment bonds, offshore unit trusts, offshore property funds etc.

An offshore investment offers a high level of privacy and is sometimes is looked at suspiciously as offering a channel for investing illegally acquired wealth. However offshore investments shield legitimate, affluent individuals from the financial pressures and constraints faced by them in their home country.

In fact offshore investments managed by offshore investment companies are completely legal and are regulated by the jurisdictions of those countries where investments are made.

Investors who live away from their home country, those who want to maintain their financial privacy and those who want to protect their assets legally usually opt for offshore investments.

Other reasons for offshore investments are benefits from a reduction in taxes, opportunity to remain discrete in financial affairs (due to family arrangements), and to expand investments beyond the investor’s current jurisdiction, to achieve a better return on investment.

Offshore investment companies with their years of investment experience gained by working in offshore jurisdictions help both corporate and individual investors to protect their assets through market savvy investments, thereby enabling investors to attain maximum return on their overseas investments.

Offshore investments shields investments from capital gain taxation and augments assets through a confidential and secure investment that is not governed by the rules and regulations of the home country.

It is very essential to choose the right offshore investment service provider to ensure that good advice is being obtained and more crucially an excellent ROI is achieved. Offshore investment companies work closely with their clients so as to get a detailed understanding about their investment and financial objectives, which enables them to give the best possible offshore advice.

Offshore investment companies prepare well constructed balanced portfolio of investments for their investors so as to ensure success. They update the investment portfolio because financial markets adjust according to world economies and are prone to internal and currency fluctuations. They make assessments on investments after every six months along with a full financial analysis once every 12 months. This is essential to maintain the growth of the investment portfolio.

Investing offshore can be a very attractive option to an investor who wants to explore and invest in markets outside the home country by acquiring overseas private investments. The common perception that offshore investments can be very risky does not hold any truth. In fact offshore financial centers rely heavily on offshore capital and as such are very concerned about maintaining their reputations.

The term “Turnkey Investment Property” is becoming more and more popular in real estate investing.  As the name implies, turnkey investment properties are setup for an investor to simplify the process of obtaining rental properties.  All of the work to setup the property has already been completed by the turnkey specialist and the investor can simply purchase the property and start collecting rent checks.  For many investors, this is a much preferred method for obtaining rental properties because they avoid all of the hassles of setting up a rental property: 

Locating Neighborhoods to Invest In
Determining Rent Comps
Finding Properties
Making Offers on Properties
Arranging Utilities
Pull Permits
Hire Contractors
Renovate Property
Hire Property Manager
Register Rental Property With Local Municipality
Show Property to Prospective Tenants
Screen Tenants

As you can see this is a fairly daunting list of activities to setup a rental property and can demand a considerable amount of time.  Quite frankly these activities are better left to be handled by a turnkey specialist.  This is especially true when an investor wants to invest in markets outside of their local area.  The right turnkey specialist will have a system in place to provide investors with the best properties in the best areas at the lowest prices to ensure the highest return is achieved.

Michigan Turnkey is one such company providing turnkey rental properties in Southeast Michigan for investors worldwide through their proven turnkey investing system.  This system employs the following fundamentals for all of their properties:

– Michigan Turnkey spends an inordinate amount of time researching the local real estate markets where they are buying properties.  Most of the best investments are located in urban areas where prices are depressed and rental markets are strong.  In these areas the quality of the neighborhoods can vary considerably within a few square miles.  Therefore it is critical that your turnkey specialist have an in-depth knowledge of the market.

– Michigan Turnkey only purchases property that meet the criteria listed below.  This ensures that the properties are in good structural condition, and that they will make for excellent demand on the rental market.

2-4 Bedrooms
1-2 Bathrooms
700 – 1300 Sq Ft
Must Have a Basement
No Structural Issues
No Water Damage

Each of the properties is fully renovated using the principle of “Green-Habbing”.  As it implies, “Green-Habbing” focuses the renovations on using green materials, and providing an energy efficient home.  Insulation, windows, sealing air leaks, high efficiency appliances, high efficiency furnaces are all areas of focus when green-habbing a property.  The advantages that green-habbing provides are many.  The home will require lower heating bills making it desirable for tenants, the home’s value will be increased, tax credits are received for the renovations, and most importantly it’s the right thing to do for the environment.

Each property must achieve a minimum of a 16% return on investment for the investor purchasing the property.  This is realized by having the systems in place to locate the right properties, minimize renovation costs, and ensure rental rates will support the income required by the property to achieve this level of a return.

Through these fundamentals, Michigan Turnkey is providing an excellent opportunity for investors worldwide to invest in a great real estate market.  The conditions are right, and the time to invest in Michigan is now.  Low housing prices and strong rental markets make for excellent turnkey rental opportunities, and when you couple that with the probability of high appreciation in the Michigan real estate market it’s really a no-brainer to be adding Michigan properties to your portfolio.

The United States of America requires a person entering the United States for an extended period of time to obtain a visa. If an individual plans to stay permanently in the country they must apply for and be approved for a green card. Choosing to become a United States citizen will take another step beyond obtaining a green card, and include an application process and a test. In order to obtain a Green Card Visa there are regulations and guidelines an individual must meet.

A green card is what proves that a person has obtained lawful resident status within the United States. In order to obtain a green card visa a person will need to go through an application process and there are several ways that a person may qualify.  These include employment, marriage, investment, adoption, and through a relative. It is important to read through the descriptions of each application process to determine which will be the best suitable process for your current situation. If you currently have a work visa, obtaining a green card visa through employment status will probably be the best option, even if you qualify under another type of application.

Individuals who are willing to invest in the United States will have the option to apply for a green card visa under the Eb5 Visa Program. This Immigrant Investor Visa offers a person a way to gain a green card by creating jobs in the United States. The minimum investment amount for this program is 0,000. There are several requirements that must be met with this investment, including the creation of at least ten United States jobs. The areas where the investments must be made are also restricted to those areas that have the highest unemployment rates in the nation.  Taking this route to obtain a green card can be one of the best ways for a person to gain unrestricted privileges in the country.

There are several visa programs offered by the United States that allow people the right to stay in the country for an extended amount of time. A business visa will allow an individual to visit the country for business purposes that do not involve receiving any type of payment. A tourist visa allows a person to visit the United States for leisure purposes.  Any individual who wishes to obtain an education in the country will apply for a student visa. This is required for any type of educational program that a student wishes to enroll in. There are two types of work visas that allow individuals access to the country as well.

There are different requirements for each type of visa. An individual will undergo a background check in order to gain entry into the country.  Work visas can be confusing as there are several types to choose from. It is important to state what type of work that is going to be done in order to ensure the right application is chosen. Most of the time visas are obtained rather easily and can be renewed without many problems.

The EB5 Green Card is like a permit card which provides a permanent residency provision in the United States. This card not only helps foreign investors in obtaining unrestricted living permission but also gives the applicant’s spouses or any other offspring with this opportunity. The basic route to EB5 green card avoids the necessity of having a family connection to get permanent residency. The Immigrant Investor Visa was launched in 1992. The purpose of the program was to stimulate job growth in the United States and to allow eligible aliens to become legal residents of the country.

In the present, the EB5 Investor Visa has become the most prominent and notable Visa program of the United States. The reason for this specific demand is apparent enough. It provides the United States with a large platform to look for foreign investors and provide them with an increasing growth of opportunities. Yet there seems to be confusion surrounding the EB5 Investor Visa program with regard to the EB5 green card access.

There are many misconceptions regarding the Eb-5 Investor Visa program, the first thing in the list is a misconception about risk involved with the program. It is natural that an investor worries about his or her hard earned investment and the risk involved if they invest in the immigrant investor program. In actuality, this investment can only be reduced to half under some conditions and regulations which is a considerable amount of money. But a foreign investor would fail to get the EB5 Investor Visa if they fail to adhere to the policies of the investor immigrant program.

One should also make sure of the fact that there is no guarantee that an individual investor would get their invested money back which was invested in this EB5 Investor Visa program. This particular risk can be minimized only when the investor makes the investment in a well structured EB5 Investor Visa program which they can understand more about in an EB5Investor Visa regional center. The investor who wishes to apply for an Eb-5 Green Card should have a business plan in good shape and must be in a condition to implement the plan. This practice will not only help the applicant save time and avoid last minute hasty business plans but it will also help in utilizing the time spent in the investment plans. If the investor does not want to start their own business, they can invest through a regional center – a federally designation investment destination that will process their paperwork for them and invest the money into a specific investment scheme based on the center itself.

When it comes to regional centers it is important for these centers to take the lead and contemplate the matter that the investor’s investment is not done in vain but rather it will be utilized correctly. Lowering risks on the invested money is the first priority of the EB5 InvestorVisa. Having prior diligence and making wise decisions can only increase the investment’s potential to succeed.

Permanent Residents or Green Card holders are approved to stay and work permanently from the US. Many people get their green cards by means of employment, via marriage or through the green card lottery system. Acquiring a Green Card by means of work is significantly less favored by many people because the employee wants an employer inside the US to petition for them.

Green Card through employment:

You will find different categories in which an individual might get a Green card through work.

* Green Card through position offer

* Green Card by means of investment,

* Green Card by means of Self Petition, and

* Green Card by means of unique classes of work

Green Card by way of job offer:
If a person wishes to get a Green Card by means of work he/she must find a position give in Usa that’s pertinent to his/her educational qualification. In the event the particular person is offered the career, then the US employer need to sponsor the individual. The US employer need to file a petition to sponsor the individual in the immigration method. The petition works as an authorization that the particular person will likely be employed on getting into US. This group might demand a letter in the Department of Labor to show that the particular person is experienced for your career and no American is displaced with the individual.

Green Card by means of investment:
In the event the particular person wishes to acquire a Green Card however investment then he/she must invest in an enterprise that would produce new work in US.

Green Card by means of Self Petition:
Some individuals may petition for on their own if they fall under the class known as Aliens of Extraordinary Capability wherever the applicant has extraordinary potential in sciences, business, athletics or schooling. With this circumstance the applicant should offer documents of proof that their awards of excellence happen to be identified internationally.

Green Card by way of particular categories of jobs:
It is a category exactly where the person might get a green card primarily based on his/her previous or current position. In these instances when the particular person isn’t ready to adjust the status within US to Permanent Resident, then the immigrant petition may be sent to the US Consulate overseas to complete the process.

Procedure:
Acquiring a Green Card via work can be a multi – action method in which it requires a extended time for the petition to become authorized. When the petition has long been filed, the very first action is getting the Labor Certification. When it’s authorized, the individual’s US employer ought to file form I-140, Immigrant petition for Alien Worker. The second stage is Adjustment of Status in Usa or Consular processing. In the event the applicant is in US he/she might apply for Adjustment of Status. In the event the applicant is abroad, he/she may go through consular processing. In the event the petition for Green card by means of work through the US employer continues to be authorized, USCIS will forward the authorized application towards the Division of State’s National Visa Center and can notify the US employer regarding the approval with the petition. This may take 15 to 24 months or perhaps lengthier than that based on the priority date with the applicant.

Here is an investment that not only protects you against the future but is also moral. Jatropha Green Oil Investment from Colchester in the UK has a speciality to provide to their clients an investment which has rare benefits related to folks and the environment. It guarantees to guard you against the uneasy commercial environment as well as counterbalancing global warming.

Coming from Central America, Jatropha is a hardy shrub that grows well in difficult conditions, and that includes land that is barren and infertile. the Jatropha seeds give up a green oil that whilst it is inedible can be refined into bio diesel.

1,100 imperial gallons of oil per 10,000 square feet of Jatropha plantation can be produced each year. the Jatropha plants live for 50 years during which time every one removes 900 lb of unwanted CO2 from the atmosphere. Another benefit is that the roots of the Jatropha plant reduce erosion of the soil and increase it’s ability to absorb water.

Another advantage coming from Jatropha plantations is the creation of work for the inhabitants. The reason is because their fruit can not me mechanically picked but must be cropped by hand.

Take Mr Yopundung and his better half for example. On their little plot in Thailand they cultivate Jatropha for Jatropha Green Oil Investment. A team was dispatched by the company to prepare for planting of the Jatropha plants a previously barren section of land. They gave the couple the Jatropha saplings to plant and showed them the easiest way to look after them.

Land that’s not good enough to grow other crops and would normally be left fallow, can be brought into use by planting Jatropha due to it’s ability to tolerate poor soil conditions. Some farmers also like to plant Jatropha between their other crops as the Jatropha will help to boost the soil’s structure.

When the Yopundungs’ Jatropha trees bear their first crop of berries next year, Jatropha Green Oil Investment will pay them for the seeds, remove the oil and send it to the market.

An essential activity is to find to discover different options to crude oil that are practical and economically feasible. It is the planet’s governments who are coming under upwards pressure to meet these ends.

The main reason for global warming is believed to be caused by the burning of carbon-based fuels which causes a total of 21.3 billion tonnes of carbon to be discharged into the atmosphere each year. And if further motivation is needed, 45 years is currently stated as the life of the remaining indigenous oil reserves.

Rival contenders to Jatropha, which is inexpensive to produce, are a threat to nutrition supplies. Corn, soya sugarcane and palm are examples.

One country which has woken up to the edges that Jatropha offers, is India, who has set a goal for 2012 to be self adequate in fuel. 27,000,000 acres of barren land has been put aside for Jatropha plantations that will subsidised.

A mixture of Jatropha oil and diesel is in use by Indian Railways and India will have substituted 20% of its diesel use with Jatropha biofuel by 2011. Other countries are prepared to replicate this change including Brazil, Malawi and Malaysia.

The cost of Jatropha oil is not likely to experience the wild variations that characterize the crude oil prices. This is one of the key fuels of the future, so demand and production capacity are only going to rise for some time to come.

Jatropha Green Oil Investment programs supply a superb yearly ROI of over 29% and also give their financiers an opportunity to take part in this green oil revolution. Their clients are reassured that while they could be enjoying a good rate of return on their money, it’s not at the cost of others. To the contrary, they may be helping to reduce global warming and help some of the least wealthy parts of the planet to live a better existence.

Learn about the security in a Green Oil Investment.

Patricia Ellis from JatrophaGreenOilInvestment.com says, “This is a attractive investment opportunity having a potential of returning 345%. For example, a seed investment of £10,000 would compound to £44,500 in a five year investment span”.

or go to “how to invest” on the website.

The path to success in the stock market is not as easy as most people believe. On the other hand, it is not as difficult as some think. But between the easy and difficult, is better to simplify things with a few tips for investors who do not find many problems when they start their investments in stocks. That’s what I do in this article, share some tips, like…

The idea is quite logical. If you invest all your money into shares of the same company and one day that company has serious financial problems or, at worst, go bankrupt, all your savings will be gone. That’s why successful investors say we should not ever put all our eggs in one basket. Because if we let that basket fall, it’s over.

Moreover, those who purchase several different stocks may think they are following a safe path but they’re actually just trying to avoid big losses. There’s no problem at all in trying to avoid losses, but this is done by choosing good stocks of great companies. But those investors who own 30 different stocks will never be rich because as an asset gets more value ion time, another loses it’s value. So you will never lose anything but never gain anything either. Therefore, don’t diversify too much, just a little is better.

Sometimes you will want to invest but won’t be able to find any good investment opportunity. At these times you have to be patient and sit still. Those who buy shares just because they feel bored, usually lose money. Remember, there are times to buy, times to sell short and of course, times to go fishing.

There are some people who consider themselves investors only because they take guesses. They do not study the stock market, they do not know how to invest in the stock market and generally don’t have the slightest idea of what they are doing. Because they’re too lazy to study, they decide to follow investing advice from people who know even less than them. So if you want to become a successful investor, learn to invest for yourself, do your own homework, do not accept guesses and try to avoid them.

When some investors start losing their money, the first reaction they have is to be afraid, “Ohhh, will I lose everything? This is it? It’s over?. Then they sell their shares due to a bad week. They forget that their analysis indicates that the stock might be a great investment a few years down the road. So if you’re investing, focus on the long term. A company does not cease to be worth more or less because their stocks were in the red for a few days, but those who think so… yes, always lose money.

It’s possible that some of our investments do not work as expected. Eventually we may lose money or earn close to nothing. However, a competent investor will recognize when he is wrong and quit their bad investment. If you invested in a stock because the company would launch a revolutionary product but that product ended up being a failure, do not argue with the facts and just sell!

To succeed in the stock market, an investor needs to admit when he made a mistake. So just be humble about your (temporary) failure and move on to another investment. Remember, you don’t need to be right 100% of times to get rich in the stock market. But you really need to be 100% right about being wrong and be able to realize that fast

Are you ready to make money in the stock market? Investing is an important step towards building your personal wealth, and there are many things to consider before you begin.

Your present financial situation

You need to begin by evaluating your current financial situation. Consider your assets, your liabilities, your total household income and the amount of discretionary income that you have available to invest on a monthly basis. Your discretionary income is the income that you have left over each month after you pay all of your household expenses. Next, you need to evaluate your current level of cash reserves. Cash reserves can be defined as the assets set aside in the case of an emergency or for an opportunity. An example of an opportunity would be a great investment, a real estate property that you want to buy or a great vacation discount that you want to take advantage of. It is recommended that you keep between 3-6 months of your total household expenses set aside as cash reserves. The other factor to consider is the level of your personal protection. Your most important asset is your ability to earn an income. Protecting yourself, your home, your vehicles and your family is important. Evaluate your levels of insurance coverage to determine whether it is sufficient to cover your present needs.

What are you saving toward?

Everybody saves for a purpose. Some people save to ensure a better retirement. Some people are saving to buy a car, home or a new boat. Some are saving to ensure that their children have a great college education. Before you begin to save, sit down and think about all of your goals, and then prioritize them based on personal importance. Ask yourself whether these goals pass the acid test. The acid test asks if you would be willing to do whatever it takes to achieve these goals. For example- Would you reduce your lifestyle and expenses to save more money if it would ensure that you reached your goal? If a goal does not pass the acid test then you should remove it from your list. Next, define each goal with a time frame and an amount. For example- I need to have ,000 saved for my oldest son by 2010 to pay for his education, is a clearly stated goal. Once you have defined your goals, determine the dollar amount needed to save to achieve them and the length of time you have to save for them. These factors will be taken into consideration when making your individual investment selections.

Do you understand your investment options?

Consider investing into mutual funds if you are a new investor into the stock market. Mutual funds are comprised of multiple individual stocks or bonds and usually offer a smaller initial investment amount to be contributed on a monthly basis. This smaller dollar amount makes it possible for a variety of investors to begin saving into the stock market without large sums of cash already set aside. Understanding stocks, bonds, mutual funds, real estate investment trusts, cash value life insurance, annuities and trusts is an important place to start when you are a beginning to invest. Research each investment option to determine which combination will best assist you in reaching your financial goals.

Define your Investment Risk Tolerance

Now that you have an understanding of the stock market, you need to determine your personal risk tolerance before you start to invest. Your risk tolerance refers to the amount of variance you are comfortable with in your portfolio, and is often defined by how far away the goals that you are savings towards are. Investors are typically categorized as Aggressive, Moderately Aggressive, Moderately Conservative and Conservative. Each investor type is characterized by their investment portfolio, their time frame to save, their expected portfolio returns and their overall tolerance to withstand portfolio value changes on an annual basis.

These are the most important things to consider before you invest into the stock market. Having a financial plan that you implement will increase your chances for financial success.

This is not investment advice. Before implementing any investment strategies, consult your financial advisor or financial professional.